Finance Division — Manuals

Accounting Services

The University Billing Rate process is required of departments or divisions that provide goods or services to internal and/or external customers on a recurring basis. Annual billing rates and changes to existing billing rates must be submitted to the Controller’s Office following the steps listed in the “Billing Rate Procedure”. Any new billing rates or significant changes to existing billing rates must be submitted to the Controller’s Office and approved by the Administrative Council.

Discussion

The University Billing Rate process is designed as a mechanism for communication, review and approval of University department billing rates for use in budgeting and effective planning. As rates are being developed department or business office staff should communicate with University customers any significant changes. All rates must be documented with a cost or market basis.

When rates are established for goods or services that may be charged to federal programs, government cost principles, as defined in Office of Management and Budget Circular A-21, must be followed. Circular A-21 helps insure the federal government bears its fair share of total costs.

Legislative appropriations and student fees provide a level of support for the Educational and General (E&G) and Public Service Activities (PSA) of the University. These resources are used to pay salaries, operating costs and build many of our facilities. It is not appropriate for E&G and PSA units to recharge other similar funded units for services and space.

Billing rates that result in a major change in philosophy or have a significant impact on campus users will be forwarded to the Administrative Council for review and resolution.